Schwarzenegger warns California is almost broke
Govenor Arnold Schwarzenegger declared a fiscal emergency yesterday and called the state's politicians into a special session to address California's $11bn (£7.4bn) deficit.
The state's revenue gap is expected to hit $28bn over the next 19 months without bold action. The emergency declaration authorises the governor and politicians to change the existing budget within the next 45 days.
Without quick action, the state is likely to run out of cash in February.
Schwarzenegger and Democrats have proposed a combination of tax hikes and spending cuts, but Republican politicians are steadfast in their refusal to raise taxes.
Politicians failed to reach a compromise during the special session Schwarzenegger declared last month, pushing the problem to a new Legislature that was being sworn in yesterday.
The crisis worsens each week, so the Republican governor did not want to waste any time in declaring a special session, said his spokesman, Aaron McLear.
"It's important that we start on Day One so the new Legislature can start immediately to solve our fiscal crisis," he said.
There appeared to be little reason to believe that Republican politicians would budge on their opposition to tax increases.
"If anything, I think our resolve (against raising taxes) is deeper than it has ever been because of the economic realities," Senate Minority Leader Dave Cogdill said yesterday.
Democrats don't have the two-thirds majority in either the Assembly or Senate that is required to pass tax increases or a state budget.
World's most lethal spider found under a bunch of bananas
Rumours that the star wants to move on to pastures new
Comedian says he 'never laughed as hard as I have writing with Rik'
- 1 Jack the Ripper: Scientists who claims to have identified notorious killer has 'made serious DNA error'
- 2 Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
- 3 Star Wars memorabilia called a 'bit of plastic' by Antiques Roadshow's Fiona Bruce valued at £50,000
- 4 Meet Thea, Norway's 12-year-old child bride
- 5 Russell Brand might seem like a sexy revolutionary worth getting behind, but he will only fail his fans
Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
Oscar Pistorius sentencing: Olympic star must serve 10 years, prosecutor urges
Isis fighters 'crucify' 17-year-old boy in Syria
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Oscar Pistorius sentence: Athlete's wealth and notoriety provoke an overdue debate on South African prisons
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
£22000 Per Annum: Clearwater People Solutions Ltd: Our client based in Thame i...
£25000 Per Annum: Clearwater People Solutions Ltd: Our client based in Chelmsf...
£110 - £130 per day + Competitive rates of pay: Randstad Education Reading: Pr...
£45 - £70 per day: Randstad Education Plymouth: TEACHING ASSISTANTS REQUIRED F...